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- Title
AN ECONOMISTS' STATEMENT ON ANTI-INFLATIONARY MEASURES.
- Abstract
Few economists believe that prevention of inflation in the situation created by the expanding defense program requires, as the principal line of defense, a substantial increase in taxation, reductions in expenditures at all governmental levels wherever this can be done without impairing national defense or other essential public services, and a more restrictive credit policy. With the economy already operating at very high levels, further increases in spending can not fail to enhance inflationary pressures. Large expenditures on military programs and foreign aid, with their inflationary impact, may be needed for a decade or more. There are three principle ways to curb the long run inflation, firstly, scrutinize carefully all government expenditures and postpone or eliminate those that are not urgent and essential. Secondly, raise tax revenues even faster than defense spending grows so as to achieve and maintain a cash surplus. Thirdly, restrict the amount of credit available for businesses and individuals for purposes not essential to the defense program. Selective controls over consumer credit, real estate credit, and loans on securities are useful for this purpose and should be employed.
- Subjects
UNITED States; ANTI-inflationary policies; ECONOMISTS; FISCAL policy; PRICE inflation; MONETARY policy; WAR tax resistance; PRICE inflation &; taxation; PUBLIC spending; CONSUMER credit
- Publication
American Economic Review, 1951, Vol 41, Issue 1, p82
- ISSN
0002-8282
- Publication type
Article